HomeMy WebLinkAbout1998-03-16 Finance Committee MinutesFurnace Committee
Meeting
3-16-98-98
Councilors Attending: Jim Tyler, David Leen, Joe Baldacci
Staff Attending: Edward Barter, Norm Barnstorm, Erik Stumpfel, Pat Blanchette,
Dave Pellegrino, Gad Campbell, Dale Therioult, Bob Zielgehux,
Dave Little, Brian Brwan
Others Attending: Roxanne Saucier, Mr. Dusik
Meeting convened m 5:03 p.m.
1. Executive Session'. Land Disposition
The Committee entered into executive session for the purpose of discussion land
disposition.
u. r; ..n. a1•1
This item was eliminated from the Agenda.
3. Bids:
a Portable Radios(Airport)
Atlantic Communications ofBangw ($6,640)
Dave Pellegrino explained that the FAA has required all airport vehicles to have
radios in order to be in comtmmication with the tower. The recommendation is to
award to Atlantic Communications, the low responsive bidder for a total of $6,640.
Canceller Tyler commented that, historically speaking, City staff hasfsh that
Mo[wolaradios were supedwmothere. Should there be concern that the Kenwood
is of adequate quality or durability? Bob Ziegelaar replied that he also questioned
this and fount this particularbmndtobe agood bran. Thereis local servicing where
some other less responsive bidders did not have local serwang. Approved
reconwendation.
b. 4x4 Pickup Track, Cargo Van & Utility Vehicle (Auport)
These are three budgeted itematoy the Import. The recommendation m to buy all the
vehicles from Verney GMC, the law, bidder for the fust two and the low responsive
bidder for the 4x4 utility vehicle. There was about $4,000 worth of equipment that
was not included in the Calais Ford an Whited Ford bids. The prices look a little
high because on the sport utility vehicle there is about $7,500 worth of light bars.
mdmandthedecelarometerthetisneedn. Theahortfallof$9,265willbecoming
out of the 8504 account, an equipment account, which has a balance of $12,000.
Recommendation approved.
C. Food &.Beverage Concesstou(Bangor Municipal Golf Course)
Frank W. Jordan of Veave ($3,000 per year payment to the City)
Dale Thenrult and Brian Bran talked with both of the individuals who submitted
proposals. Dave believes that lama Vardamis was not intere aed in the hours that
were proposed by Brian Frank Jordan rums the Legends Sports Bar and has been in
the business for a long time. Recommendation Approved
Ron Heller erplatued that the current insurer bas done an excellent job for the City. They
have maintained that they would quote the same program the year that was paid Ian year and
they have indicated a willingness to hold that premium for en additional year as well. Staff
is asking to waive the bid process this year. Ed Barren explained that the most important
element ofinauraoce is the service you receive, and it has been murkably better since Great
American has taken it over. There was a lot of diffncWty with the previous insurance
comparem Erik explained that m competing pan perfomance, when the canter was Dunlap,
he can not recall a case where someone filed a claim and then later filed suit against the City
because they were unhappy with the adjustment process. The same is true with Great
American. CoRegis was etualy the opposite There were approximately a half a dozen
cases filed against the City. Dave Pellegrino explained that this would be curving the bid
process for a three year period. Councilor Tyler feels that the City should go shopping
periodically Erik explamod that the City does not contract directly with the carrier so when
you seen oat abid, you don't ger bids from Alliance, Great American, CoRegis, etc.; you get
bids From agencies and then they place the insurance with the carrier. Agencies will shop
mound and develop a premium figure based on quotes they get; then they'll place the
insurance and there is very little control over where that goes. N this case, they switched
beemsethe Citywas unhappy with CoRegis and CORegls was not happy with the City. Ed
Banat recommends that it not be renewed for three years. Dave Leen asked Tpmt of the
problem was not only with CoRegis but with the service that the City was receiving from
Dunlap and how some of there cases was handled. Erik ended that in his experience, the
City does not ger service from the agency, but From the carrier. Ron Heller felt there were
some problems with Dunlap and their advocacy for the City with CoRegis. It was Ron's
understanding that their level of service and then ability and willingness to accommodate the
City has improved dramatically over the past year. Erik stated that his personal preference
is, ifpossible, to place the insurance directly with the camas. Recommendation is to table
this issue until definer discussion.
This is an amendment that would allow the City to issue a single vicholers license for short
un a events sponsored by non-profit or chartable organizations that have multiple vendors.
It is primarily for events Re the World's Largest Garage Sale, so that instead of each
individual vendor having to mitre in, it would be a group permit. Code Enforcement tends to
be at events like this routinely throughout the event. Ties would make the papa and
permitting process a little easier for those who participate in those events. Approved
recommendation to Caused
a, i.17lTS'd:S7
Mr. Husek resides at a property that the City has in an agreement with CMJ, Inc. at 18
Eigh[eanh Sunt He is working on getting refurram ng to pay CMI m full and pay the City
the taxes the aro due, approximately$7,100. >n wonting m ger this refirencN, it was
discovered that the City has Two additional judgments against him as an individual. Dan
pertains to personal property taxes back in 1989 and one is for a land use violation, The total
of these is about $2,800. Mr. Husek is concerned that the finsncing companies tum him
down om the real estate refinancing iftheaejudgments are not cleared up. Mr. Hwek has
made an offer of $. 10 on the dollar to clear these up. W. Husek explained that be has been
innegofiations with sevual banks and most ofthem wont even consider it. Heisnowbying
to nationals with out of own banks. Councilor Leen feels that except for the fact that Mr.
Husek is attempting to buy the property, there has been no attempt at all to rectify the
judgments wild the City. Councilor Baldacci feels it would he appropriate to get same idea
ofwiust Mr. HuWs haonw and assets areto see what the financial situation is. Dave Little
explained that one of the reasons That this was put on the agenda is because Mr. Husek
indicated to Dave then there was a timing issue involved with the finance company, and he
was hoping to gm screening resolved as soon as possible. Dave can try to obtain This
murniailon and speak with the financing company to get abetter understanding of what they
want to do. Councilor Lew suggests dad the City get back the original cost tithe judgment
plus any money That the City expended and perhaps Mr. Husek can work out an agreement
that would allow him To pay the City and allow him also to obtain Ids financing so he can go
forward on it W. Husekfees that The bank would rather pay it and than they would have
a clear That position on the property. Dave explained That staff would tell the financing
company that the Committee's decision is that They need to pay The original judgment
amomas and costs hmnned as], if they are willing to, they will increase his financing by that
amount. Recommendation approved.
Gail explained that this shelving is similar To what is at the Registry of Deeds and it is
requested to protea the integrity of the vital records that are already restored. Dave
Pellegrino explained then it is difficult to find a manufacturer of time type of roller shelves.
The recommendation is to purchase from Brawn's River Bindery, the City's current
restoration vendor. This purchase includes set-up and se -stocking by a representative from
Brown's Riva Funding for this project would be provided by The records restoration monies
inthe CityClenk'seurentbudga. StWff chwktos Yth is Thesamemanufaamaof
tine shelves enlhe Registry. Hit is found that his a different supplier, steTwill find out their
cost. Approved.
8.
The City has, as pan of the plane's effort to assist in cleanup from the ice stony been offered
a pod witensoanel by the S'tste Depatrnmt ofLaow through TDC. The City has requested
10 people for up m 16 weeks to work in Parks and Ree and then Public Works. Tbey will
be paid $5.50 per how and will be City employees on a Temporary basis. This is filly
reimbursable by the state, both with respect to salary and fiingm Ron Heller and Chubs
Machell feel these is some risk involved with regard to workers' compensation. There will
be ah"iring process, like with ary other apphcam. It will not differ significantly. The problem
is that these me high workers' comp percentage premiumjobs at 16%. Ron and Charlie
waned to touch base with the Comndnee for suggestions, monsoon, and whether or not the
City should proceed. Conceder Lan asked why go Through TDC? Why not just go through
an employment agency where they actually have to pay the workers' compensatlon coverage?
They we able to do apre-determination on some of the applicants. Due to the law, the City
is unable to ask These applicants if they have ever had a previous injury or workers' comp
claim. Dave feels that the City could go through a regular employment agency to get the
people to do this we& for the type of money that is being paid and even if it is $1 more an
hour, the agency is paying the workers' wrap. Ron Heller agrees, but makes The point That
the workers' wmp premium is included in who the Cry is reimbursed form TDC or the
State. Rm thinks that gr mthe parallel efforts of both FEMA and the Department ofI.abor,
if the City had the opportunity to use the TDC program and opted ort to go with it, but rather
hue the Johanna born mother source, that FEMA would probably not reimburse the Cty for
it Councilor Lem suggests that Ron find out this information from FEMA Councilor Lem
also pointed out that TDC does have a program where they do Pay the workers' comp and
woodorswhytheyareootdabghindusmsmnw? The Cosmnitteedirected the staff to find
out if TDC will pay the workers' romp and, if not, will FEMA reimburse the City if they use
an outside agency. The Committee will reconvene, if necessary, before Monday night's
Council meeting in make a decision on this issue.
Pat Blanchette wmmemed that Bangor has an Adopt -A -Park program and Shop N Save
takes charge of Cascade Park and will be going to the park on Earth Day, the first of April,
to clean up. Pat asked if Dale Theriault has contacted the other sponsors of the AdopM1A-
Park program to see if they can get their volunteers out there from their work force to help
clean this mess up. Ed Barrett will follow up on this.
9.
Council Order Tyrecum C tv Staff fn Islet Ibc Necessary Sews to Insure that the City
Fungor and Its Residents we Afforded the Lowest Possible Rates for Electricity and Natural
SIDS
This item appears a the request of Councilors Lem and Beldam, It would direct staff to
take a look at demand aggregation as it applies to energy, deregulation. Under deregulation,
ted large power users (netaral gas or electricity) are in a position to get a much borer rate for
their energy purchases than smaller users would be. There me several levels at which
aggregation can take place within a municipal context. Municipalities can work together
either region lly or statewide, and Ed believes there will be an effort to aggregate statewide
for munmpalioce which is something the City can take a lock at. V not, there are other
mobmisms locally that can be used such a the Municipal Review Committee. The second
area, which is a little more complicated, would be a municipality setting up its own power
cooperative where its residents and businesses could eras into some kind of an arrangement
toagpe uetbe'ude mdtotrytogdalo carate TLeaareacoupleofstateswhereutility
deregulation is already in effect BdfedstWsismobviousplacetodosomeresemch. State
law in Maine does allow far aggregation and Bic, according W this order, would be the
designated person to represent the City to the PUC, an they go into rule-mdavg fur it The
order relies a report back on July 13, 1999, refining feasibility costs, and alteratives an
that we can sit dawn, review it, and see if this is something to be pursued on either the
municipal level or the municipal and Wividual purchaser level.
Councilor Baldami commented that the PUC has not developed the rules, the law provides
for the aggregation. The felling is that hopefully municipalities wouldn't have to go through
extensive brewing procedures. Beans¢ of the issue of electric rates and the cost of doing
business, this fits in wdh an effort to make this region more economically competifive, which
is going to be a benefit to everyone, including utility companies. The idea would be to help
small businesses and homeowners as well as municipalities.